Overtime Allowance in the revised pay to Defence Industrial employees

The payment of Overtime Allowance in the revised pay of 6th CPC to the employees of Defence Industrial Establishments governed by the Factories Act, 1948 with effect from 1.1.2006.

Normally the Overtime allowance will be calculated as per MoD guidelines. The two types of formula has given by MoD to calculate the OTA. One for Day Workers and another for the employees working under Piece Work System.

In case of Piece workers, the OT element in respect of overtime upto nine hours a day or 48 hours in a week is to be worked out on the basis of minimum of 5th CPC pay scales till finalization of correlation of piece work rates on 6th CPC scales.

OT Payment in respect Piece Workers may be calculated as follows :

i) OT Pay = Min. Pay (as per Vth Pay Scale) X OT Hrs. (upto 48 hrs) / 200 + Band Pay  + Grade Pay X OT hrs (beyond 48 hrs) / 200

ii) OT Bonus = 1.25 x (Band Pay + Grade pay + 2 x DA (at 6th CPC rate) / 200 x OTB hrs

In case of Day workers Overtime Payment may be calculated as follows…

i)  OT = (Band Pay + Grade Pay) / 200 x OT hrs

ii) DOT = DA / 200 x DOT hrs (DA at 6th CPC)

iii) OTB = (Band Pay + Grade Pay) + 2 x DA / 200 x OTB hrs.

Particularly, the Non Industrial employees and Non Gazetted Officers may be paid the Overtime allowance and the Overtime arrears with effect from 1.1.2006 at the revised pay scales as per the orders applicable to the Industrial Employees (DWs).

source : http://centralgovernmentemployeesnews.in